Thunderbolt is an innovative I/O technology developed by Intel with Apple's collaboration, enabling high-speed data and HD display connections over a single cable with bandwidths from 10 Gbps to 100 Gbps. It supports multiple existing protocols, allows daisy chaining of devices, and features a compact design for easier connection. Thunderbolt's advantages include faster communication speeds compared to USB and FireWire, along with streamlined device management.